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Integer.pl Group – financial results for 2014

The Integer.pl Group noted consolidated revenue of PLN 604,07 million for 2014, which represents an increase of 74%

Consolidated EBITDA amounted to PLN 34,83 million

The cost of the continued international expansion of the InPost Automated Parcel Machine network by EasyPack came in lower than estimated

March 20th 2014: the Integer.pl Group – owner of InPost, operator of the worldwide network of Automated Parcel Machines (APMs) and the largest private postal operator in Poland – achieved consolidated revenue of PLN 604,07 million for 2014, which represents a year-on-year increase of 74%. The company reported PLN 34,83 million of consolidated EBITDA.

Rafal Brzoska, CEO of the Integer.pl Group stated,“2014 was a very busy year for the Integer.pl Group across all areas of business. We completed the reorganisation of the company’s internal structure and have been working intensively to prepare InPost - the postal business - to debut on the Warsaw Stock Exchange. InPost, is a matured and well-formed company that after acquisition of PGP widely developed its range of activity and is the leader among the private postal operators in Poland. InPost and PGP jointly delivered correspondence from courts and prosecutors offices to addressees, moreover, they won numerous public tenders (e.g. the Shared Services Centre and the Agricultural Social Insurance Fund) and tenders in the commercial sector – where together they already serve nearly 3.000 customers. Both companies are the frontrunners of innovation in the postal market, which confirms implementation of Electronic Confirmation of Acceptance (ECA). The volume of parcels in the InPost’s Automated Parcel Machine (APM) grew almost by 100% in Poland in 2014 and, thanks to a strategic partnership with Allegro as well as dynamic growth of parcels volumens, will increase by a further 600 machines in 2015, providing a significant increase in operating capacity. We are also developing dynamically in foreign markets – the Czech Republic and Slovakia have already reached the break-even point and, in 2015, we forecast break-even for the UK, Italy and Russia. We are currently finalising negotiations with a financial investor who will allow the development of APMs in further countries. Last year was also successful for InPost Finance- the company established further important partnerships in the field of insurance. The company is now launching new service points in local Tax Offices across Poland and concluded an agreement with PKO BP that provides access to its 2.300 branches.”– comments Rafal Brzoska, CEO of the Integer.pl Group.

In 2014, the Integer.pl Group successfully acquired funds for further development, this included issuing bonds with a total value of PLN 120 million (INT1217, INT1219, INT0617, INT0918). All bonds series were marketed in the alternative trading system CATALYST.

In 2014, the capital of easyPack – the subsidiary company responsible for the development of InPost’s APM network in Europe – was increased twice. In the third quarter of 2014, Integer.pl made a cash contribution of EUR 11,814 million, while the second shareholder - PineBridge – through its dedicated company Asterina Investments S.a.r.l. made a cash contribution of EUR 10.186 million. The share capital increase took place on October 14, 2014.

After the registration of the share capital increase the capital structure of EasyPack is as follows:• Integer.pl Group’s companies hold 53.7% of the Integer.pl share capital in EasyPack;• PineBridge through Asterina Investments S.a.r.l. holds 46.3% of the share capital in EasyPack.

On May 23, 2014 the capital increase of EasyPack was recorded as follows:• Integer.pl made a cash contribution of PLN 6.126 million and a non-cash contribution, in the form of an organised part of the company, with a value of EUR 11.45 million;• Asterina Investments S.a.r.l. made a cash contribution of EUR 16.968 million.

In 2014, the Integer.pl Group continued its development of three key business areas:• the revolutionary InPost Automated Parcel Machines• the largest private postal operator in Poland – InPost • the independent financial and insurance services provider – InPost Finance

InPost’s Automated Parcel Machines• In Poland there are currently more than 1,100 InPost Automated Parcel Machines (APMs) and the network is systematically expanding in its overall capacity. 2014 marked the latest consecutive year in which the APMs broke previous records of popularity amongst Polish e-shoppers. The number of parcels delivered via the terminals was more than 90.5% higher than in 2013 and 440% higher than in 2012. In the fourth quarter of 2014, InPost finalised an agreement with Allegro for strategic cooperation for the supply of products ordered online. Now every e-retailer using the Allegro e-commerce platform can offer new delivery options: Allegro Automated Parcel Machines InPost (PLN 7.99) and Allegro Registered Letter InPost (PLN 3.94). This makes them the cheapest forms of delivery for both registered letters and parcels. Furthermore, both options provide customers with a free returns service. In addition to the dedicated Allegro service, consumers buying at any online stores also have the option of free exchange or return of goods via InPost Automated Parcel Machines and the online service SzybkieZwroty.pl. All InPost APMs are equipped with a payment card reader and the facility for contactless payments is in the process of being implemented for all devices. The Integer.pl Group plans to install another 600 APMs in Poland and increase the capacity of existing machines.• Throughout the world - in a variety of business models – there are currently more than 4,000 Automated Parcel Machines in operation. The innovative Integer.pl Group terminals are already available on 5 continents. The development of the APM network globally is conducted by the company easyPack, in collaboration with the PineBridge Investments fund, and its objectives include the deployment of 12,000 – 16,000 devices in Europe by the end of 2016. EasyPack has continued its dynamic expansion of the Automated Parcel Machines network by increasing its reach in key European e-commerce markets including, amongst others, the UK and Italy. The Integer.pl Group also intensified its activity on other continents and has started installing machines in Asia, the Middle East and North America.

Key achievements in the international expansion of InPost’s Automated Parcel Machines include (geographically):

• GREAT BRITAIN – in 2014 InPost’s Automated Parcel Machines (APM) network in the UK has expanded to over 1,000 terminals. InPost has:o concluded an agreement with London’s transport authority, Transport for London (TfL), which has already resulting in:o installation of an InPost APM at Buckhurst Hill Station on the Central line,o installation of an APM at Victoria Coach Station- one of the busiest transport hubs in the UK.o started a partnership with VisualSoft – a British company specialising in a full range of e-commerce services;o became a partner of the British supermarket chain Morrisons- the owner of 500 supermarkets in the United Kingdom, o started cooperation with P4D – one of a few official resellers working in partnership with the largest courier networks in the world.o became a partner of MetaPack Group – the leading provider of e-commerce technology for delivery serviceso started cooperation with Virgin Wines (a part of the Virgin Group) – a leading British e-shop offering wines from all over the world.• ITALY – InPost intends to launch 800 APMs in Italy by the end of 2015. The APMs will be launched in the northern and central regions of the country and some major cities, including Rome, Milan and Turin. Eventually, the APMs will be available in most Italian provinces. To achieve this target InPost has:o became a partner TNT Express Italy - one of the best global courier companies, o established the cooperation with Carrefour Italy – one of the biggest retailers in this part of Europe,o concluded a partnership with Repsol Italy and TotalErg – the leading oil and petrol companies in Italy.• FRANCE – InPost intends to launch 900 Automated Parcel Machines in 2015. Colis-Privé is the confirmed logistics partner. In the fourth quarter of 2014, the company established a partnership with Mercialys - the company responsible for managing many major French shopping centres. As a result, InPost APMs will be available at shopping centres as part of the service offered by Village.Services (the first one was launched in the region of Clermont-Ferrand). The first phase of the project conducted with Mercialys includes the installation of 50 innovative terminals.• CENTRAL AND EASTERN EUROPEo RUSSIA – the Automated Parcel Machine network has been developed under the "Qiwi Post" brand, consisting of 340 APMs at the end of 2014. The number of parcels increased by 57% yoy.o UKRAINE – currently an Automated Parcel Machines’ network, under the POST24 brand, is available for customers in Kiev. Expansion in other regions has been suspended due to the nationwide crisis.o CZECH REPUBLIC - 100 InPost Automated Parcel Machines are already installedo SLOVAKIA – 50 InPost Automated Parcel Machines are already installedo HUNGARY – 80 InPost Automated Parcel Machines are already installed under the brand WeBox.o Other countries - installation of InPost’s Automated Parcel Machines is under way; partnership agreements, including logistics, locations and e-commerce, are being signed.• MIDDLE EAST – In the first half of 2014, the Integer.pl Group started to cooperate with Aramex, the leading global logistics and transportation solutions provider in the Middle East. The partnership will create the first network of APMs in the Middle East North Africa (MENA) region.• NORTH AMERICA – in 2014 the company InPost Canada has been founded. Its aim is development of APMs network in Canada – there were first APMs installed in the GTA region (Greater Toronto Area).• AUSTRALIA – InPost has signed an agreement with Australia Post for service and delivery of 195 Automated Parcel Machines (APMs). The previous two years of ongoing cooperation have continued with InPost Australia providing services directly for the national operator from August 2014. The ultimate goal is to join Australian terminals with other InPost APMs globally to provide cross-border deliveries.• OTHER MARKETS WHERE AUTOMATED PARCEL MACHINES FROM INPOST WERE DEPLOYED UNDER THE BRANDS OF LOCAL PARTNERS – increasing numbers of leading national postal operators use InPost’s innovative terminals, these include e.g. Australia Post, Saudi Post, Íslandspóstur, Cyprus Post, Eesti Post, 4-72 (a brand used by the Colombian national postal operator) and Nightline Couriers (Ireland).

InPostInPost is the largest private postal operator in Poland - in 2014 it fulfilled service contracts for almost 3,000 enterprises in Poland, including both public institutions and private companies. This represents an increase of 20% since the beginning of the year.In December 2014, InPost completed the acquisition of 100% of Postal Group Poland. Both companies integrated their operating structures and the formal acquisition of shares marked the final stage of the acquisition process. As a result, InPost’s potential for the delivery of correspondence was increased and, as such, its ability to win public contracts. Postal Group Poland will remain a separate company and a brand dedicated to business customers requiring advanced postal services.In 2014, InPost won tenders worth PLN 33 million for government mailing services organised by the Shared Services Centre and the Agricultural Social Insurance Fund, valued at nearly PLN 23 million. In addition, together with Postal Group Poland, InPost delivers the correspondence of courts and prosecutors' offices – the two-year contract has a value of nearly PLN 500 million and comprises 100 million deliveries.

InPost and Postal Group Poland – thanks to their operational effectiveness - offer attractive prices for postal services and the highest efficiency of service on the market - up to 75% of the registered mail is delivered directly to the addressee (without non-delivery notifications). In comparison to registered mail sent via Polish Post, InPost achieves much better punctuality - 92% for the letters D+3, and 97.5% for the letters D+5.

InPost has a network of more than 8,300 customer service points throughout the country, of which 76% open on Saturdays and 8 percent on Sundays. Every day, more than 10,000 couriers deliver mail to the doors of residents in Poland. Recipients and senders can track their letters via Inpost.pl. In 2013, the number of consignments handled by InPost numbered almost 240 million, rising to 300 million in 2014. Letters and parcels delivered by InPost are sorted in a modern, 10,000m2 sorting office which, thanks to state-of-the-art technology, can handle as many as 1.2 million packages per day.

According to a study carried out at InPost service points, 96% of all customers rated the quality of services offered as ‘good’ or ‘very good’. The results also confirmed the perception of competitive pricing of services- 83% of respondents considered them to be ‘competitive’ or ‘very competitive’ in relation to offers from competitors. Studies also indicate customers’ satisfaction with the accessibility of InPost facilities– over 75% of respondents said that stationary operating points are ‘close’ or ‘very close’ to their place of residence or work.

InPost - the largest private post office in Poland- is consistently consolidating its position on the Polish domestic market for postal and courier services:• 8,300 Customer Service Points are available for clients across Poland.• The company won the public tender to deliver parcels for KRUS (Agricultural Social Insurance Fund). The 2-year contract, starts on 1 January 2015 and is worth over PLN 22 million.• In 2013, InPost SA concluded the takeover of PGP SA.

InPost FinanceInPost Finance offers its services as a Polish Payment Institution, a status awarded by the KNF (Polish Financial Supervision Authority). InPost Finance provides services related to the provision of money transfers, regularly winning public tenders. The company delivers approximately 100,000 benefits payments per month for the following public entities: the Agricultural Social Insurance Fund (KRUS), Town and City Councils and Municipal Social Services Centres.

Furthermore, InPost Finance is launching cash points in regional tax offices. Amongst others, these are currently operating in the First and Second Tax Office in Gdańsk, the Second Tax Office in Gdynia and tax offices in Zielona Gora, Lubliniec and Myszków. However, not only tax authorities are deciding to install cash points owned by the Integer.pl Group, also public institutions like the Department of the Real Estate Management in the District Office of Bielany in Warsaw are also deciding to do so.

The fourth quarter of 2014 marked the most recent occasion for InPost Finance to significantly expand the reach of its money transfers. Thanks to the partnership agreement with PKO Polish Bank, the country’s largest bank, InPost Finance transfers are now available at nearly 2,300 new points located throughout the country at both the bank’s own branches and those of its agents.

In the first quarter of 2015, InPost Finance, together with InPost, introduced a financial-logistic solution allowing contracts and cash payments to be implemented within a single service. ‘Agreement Plus Cash’ is a development of the popular Smart Courier method- where a courier delivers a contract and the signed version is returned to the sender. The service can significantly expand the offer of banks and financial institutions, providing an extremely convenient way to supply long-term and short-term cash loans.

In the insurance segment, InPost Finance operates in cooperation with leading market players e.g. Generali T.U., LINK4, Liberty Insurance, Towarzystwo Ubezpieczeń Wzajemnych, MTU/STU Ergo Hestia and Proama. The company also provides broad outsourcing services for clearing and settlement of transactions. In this respect, InPost Finance supports the largest telecoms in Poland.